HP Hire Purchase Calculator

  • Use our HP (Hire Purchase) calculator to get a full breakdown of your HP deal.
  • We will calculate your payments, total costs, total interest charged and provide a schedule of payments detailing each month of the contract to show you the remaining balance at each payment.
  • If you do not know your interest rate, enter your monthly payment and we can calculate your interest rate for you.
  • We estimate the value of the car at each point in your deal using our depreciation model so you can weigh up the difference between the loan remaining and the resale value.
  • Click here to find the first 3 year depreciation estimate for any car.

Find Depreciation For Your Car - click to close

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Information and how to use

Hire Purchase (HP) vehicle finance will allow you to own the car once all payments have been made. You make an initial deposit and then fixed payments for the term of the loan.

Contrary to Personal Contract Purchase (PCP) or other methods, the vehicle does not have a final payment/balloon and is retained by you as the legal owner as the end of the contract.

The vehicle is provided as security against the loan and therefore it can be easier to obtain HP over getting a loan from a bank, but the interest rate charged may be higher. However, as the HP would likely be arranged by a supplying dealer, you may be able to negotiate a large discount on the vehicle.

The finance company does not expect to receive the vehicle back at the end of the contract so there are no mileage limits or fines for damage outside of wear and tear.

Use our HP calculator to estimate the full payment schedule of your deal. We will show you the interest payments, capital repaid and the balance of the loan for any stage during the entire term.

We also show you our estimated value for the vehicle at any stage of ownership by you. This can help you see the difference between the balance outstanding and the value of the vehicle.

To see the difference between different vehicle finance methods, use our Compare Vehicle Finance Calculator.

Disclaimer

This site is designed to give you an understanding of financial products out in the wild, preparing you for proper professional advice.

We have provided guides, tools, a selection of deals (lowest rate and/or fees) but expect you to seek full professional advice with a whole of market adviser before making any decision.

Use the information provided at your own risk, we're not providing advice and errors can be made. Calculations made on the site are estimates, therefore in places assumptions or approximations may be used. We cannot accept responsibility nor are liable for any mistakes.

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